Harper to Limit Bitumen Exports

(Edmonton Journal)

Surprise environmental election promise puts federal Tories on collision course with Alberta jurisdiction, NAFTA rules

Prime Minister Stephen Harper made an election promise Friday to restrict the export of raw bitumen to countries with weaker environmental standards than Canada — a pledge that took the Alberta government by surprise.

Harper promised to halt the flow of bitumen, the tar-like heavy hydro-carbon that is removed from Alberta’s oilsands and upgraded into synthetic crude oil, to countries with weaker greenhouse gas emission reduction standards than Canada.

Harper said the measures would keep the oilpatch from skirting Canadian emission targets by exporting bitumen, while keeping oilsands revenues and jobs in Canada.

The announcement rankled the Alberta government and raised several constitutional questions about which level of government has authority over the oilsands.

Alberta’s resources are owned by the province, but analysts argue that Ottawa has full constitutional authority over exports, while environmental regulations are shared between the governments. Harper and Premier Ed Stelmach each have maintained their environmental regulations will trump those introduced by the other government.

But the federal Tory leader served notice again Friday that Ottawa has the authority to dictate the environmental regulations, and that he expects all provinces to “accept federal targets.”

Harper also insisted the federal government holds the trump card on trade, and can pull “two or three constitutional levers” in case of a fight with the province over who has authority over the oilsands. Read the complete article.